LDK Found Error-Free, Rises 30%: Where is the Solar Rally?

If
this is indeed the fact, a certain controller needs to be formally sued
for causing so much damage to so many shareholders. The stock went back to where it was before this whole circus started.

LDK Solar
Co. said Monday its investigation into whether it had incorrectly
reported its silicon inventories found "no material errors" in the
inventories. The solar-product maker's investigation stemmed from
allegations of its former financial controller, Charley Situ, that LDK
had a 250-ton inventory discrepancy and poor financial controls.

The
company said Situ did not take into account all the locations where the
company stores its silicon -- an important component of solar products.
It also concluded that a provision for obsolete or excess silicon is
not required because LDK is using each of its silicon types in wafer
production.

The company will report its third-quarter results, which had been delayed as a result of the investigation, on Wednesday.

Outside
directors Louis Hsieh and Bing Xiang oversaw the investigation, which
was conducted by the audit committee's independent counsel Simpson
Thacher & Bartlett LLP and an accounting firm that was separate
from the company's external auditors. Independent experts in the
evaluation of silicon feedstock and the production of multicrystalline
solar wafers also assisted.

Again pending the news I had just
a small position (tiny in fact) in this name; now on any pullbacks,
this is a buy. I will be very curious to see if Wednesday they still
report gross margins in the low 30s, which was the case in the past
before these allegations came to the forefront.

What is unusual
is this is not driving other solar stocks upward, as this sort of
news generally creates euphoria across the sector. Might indicate the
sector is currently 'tuckered out' after a huge run and needs to
consolidate here.